Corporate NPS – Empowering Employee Retirement with Ease

The Corporate Model of NPS enables organizations to offer the National Pension System as an employee benefit. Under this model, the employer makes regular contributions to the Permanent Retirement Account Number (PRAN) of enrolled employees, helping them build a secure retirement corpus.

This not only strengthens the organization’s employee value proposition but also provides tax advantages to both employer and employee.

Why Should Corporates Implement NPS?

Implementing NPS as a part of employee benefits offers multiple advantages:
• Assures Post-Retirement Security
  Give employees the benefit of a stable pension income post-retirement.
• Tax Savings for Employees
  Contributions made by the employer are tax-deductible under Section 80CCD(2).
• Tax Benefits for Employers
  Employer contributions are treated as a business expense, helping reduce taxable income.
• Zero Onboarding Costs
  No joining or maintenance charges for the employer.
• No Administrative Burden
  All account-related processes are handled by the PoP and CRA.
• Flexible Contribution Options
  • Equal contribution by employer and employee
  • Unequal contributions
  • Employer-only or employee-only contributions

Who Can Implement Corporate NPS?

The Corporate NPS model is open to a wide range of organizations, including:
• Companies registered under the Companies Act, 2013
• Co-operative societies and bodies formed by Central or State Acts
• Public Sector Enterprises and Government Companies
• Registered Partnership Firms and LLPs
• Proprietorships, Trusts, and Societies
• Foreign companies with registered Indian employees
• Embassies, Consulates, and Diplomatic Missions in India
• International Organizations such as UN, WHO, World Bank, ADB, etc.

Documents Required for Corporate NPS Registration

To get started, the following documents need to be submitted:
• Duly filled CHO-1 Form
• Board Resolution (if applicable)
• PAN & TAN Copy of the organization
• Certificate of Incorporation
• GST Certificate
• Bank Account Details
• Address Proof
• Copy of Memorandum & Articles of Association (MOA/AOA)
• Letter of intent or supporting letter for NPS implementation

How to Implement NPS in Your Organization

The registration and implementation process is simple and streamlined:
• Step 1: Select a Point of Presence (PoP)
  Choose a licensed PoP to facilitate the NPS implementation and assist throughout the process.
• Step 2: Submit Registration Form & Documents
  Share the completed CHO-1 form and supporting documents with the PoP for verification.
• Step 3: PoP Submits to CRA
  Once verified, the PoP submits your documents to the Central Recordkeeping Agency (CRA) for company code generation.
• Step 4: Receive Registration Numbers
  CRA generates and shares CHO (Corporate Head Office) and CBO (Corporate Branch Office) registration numbers.
• Step 5: Employee Awareness Campaigns
  PoP or Pension Agents conduct orientation sessions to educate employees about the benefits of NPS.
• Step 6: Employee Onboarding
  Employees can register digitally, with HR teams validating employment details. PRANs are activated upon completion.
• Step 7: Start Corporate Contributions
  Once employees are registered, employers begin contributions by deducting from salaries and routing them via PoP.

Build a Future-Ready Workforce

Offering NPS through LIC Pension Fund is a simple yet powerful way to help your employees plan for retirement while optimizing your tax outflows.

📞 Ready to onboard NPS in your organization?

Get in touch with us today to begin the process by clicking here.